Under the Plan, an account is established in your name. Throughout your employment with KAUST, your account grows through:

• KAUST benefit credits. A percentage of your Benefit Base Salary, based on your cash balance service, plus


• Interest credits. Based on your Cash Balance Account at the end of the previous month.

Your monthly Benefit Base Salary will be used to make monthly contributions to the Plan. Your monthly Benefit Base Salary does not include:

• Overseas Incentive or Over Base Allowance, or Competitive Adjustment Allowance
• Sign-on Incentive
• Administrative Allowance
• Strategic Recruitment Allowance
• All other sources of payments or allowances

The plan will automatically credit your account based on your years of cash balance service as shown in the chart below:

Your years of cash balance service are determined by counting the number of complete years you have worked for KAUST. For instance, on the first day following your fifth work anniversary with KAUST you will begin to receive 13% as a benefit credit.

At the end of each month, you receive interest credits on your account that are based on your account value at the end of the previous month. The interest credit rate for the calendar quarter will be the average of the annual interest rates on the 30-year U.S. Treasury bonds for the first month of the preceding calendar quarter.

For example, if the average interest rate in January was 4 percent, the Plan interest rate for April, May and June will be 4 percent.

Your entitlement to severance under the Saudi Labor Law will be reduced by any benefits received from this Plan.